Japan's planned launch of its initial stablecoin set for the autumn season
Japanese Fintech Company to Launch First Stablecoin
Japanese fintech company JPYC Inc., based in Tokyo, has announced plans to issue the country's first stablecoin as early as this autumn. The stablecoin, operating as a form of electronic payment using blockchain technology, is intended for use in both individual and corporate transactions.
According to Noritaka Okabe, CEO of JPYC Inc., the company aims to promote the use of Japanese yen through its stablecoin. There is no limit on the amount that can be transferred or held with JPYC's stablecoin, making it a convenient option for quick payments and remittances at low cost.
The stablecoin is backed by legal tender or government bonds and is pegged one-to-one to the Japanese yen. JPYC Inc. has set an upper limit of 1 million yen's worth of stablecoin per client per business day for issuance. Transfer and issuance fees for the stablecoin are free.
JPYC's stablecoin requires approval from the Financial Services Agency (FSA), which has established a framework allowing stablecoins pegged 1:1 to the Japanese yen and backed by liquid and low-risk reserves such as bank deposits and Japanese government bonds (JGBs). The first domestically issued yen-backed stablecoin (JPYC) is set to receive approval in 2025, marking a milestone in Japan’s regulatory approach to stablecoins.
Issuers must back stablecoins with at least 50% reserves in low-risk assets like Japanese government bonds, supplemented by bank deposits, to ensure liquidity and stability. Issuers must also register as licensed money transfer businesses, subject to anti-money laundering (AML) requirements and compliance with Japan’s financial regulations.
Japan is moving toward a stricter classification of some digital assets, potentially reclassifying certain crypto tokens as securities under the Financial Instruments and Exchange Act (FIEA). This includes enhanced disclosure obligations, insider trading rules, and market abuse protections to foster transparency and investor safety. However, stablecoins tied to fiat are currently regulated under payment laws rather than securities laws.
The new stablecoin regulatory regime aligns with Japan’s broader strategy to integrate blockchain innovation within its financial infrastructure, enhance demand for government bonds, reduce borrowing costs, and promote financial innovation domestically and internationally.
JPYC Inc. has been approved by the Financial Services Agency as a funds transfer service provider. The stablecoin to be issued by JPYC Inc. is expected to be used for individual international money transfers and corporate payments. With its launch, Japan is set to join the growing list of countries embracing stablecoins as a viable means of electronic payment.
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